Telecom Stocks Outlook
Brief rally expected next week ahead of earnings
This story was originally published at 20:14 IST on 3 January 2025
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MUMBAI – Shares of telecommunication companies may rise next week, with investors eagerly waiting for companies to begin reporting their earnings for the December quarter to help them gauge the way forward. Telecom stocks, along with the overall market, may see a brief rally until the earnings commence, Piyush Pandey, senior vice-president of institutional equity research at Centrum Broking, said. However, the rally is unlikely to last as telecom companies are expected to report weak earnings, he said.
The December quarter is seasonally weak for the telecom sector, Pandey said. However, there might be some gains in telecom stocks if the commentary around earnings is positive, he said.
Most telecom stocks ended the week with gains, barring those of Bharti Airtel. Shares of Vodafone Idea rose nearly 11% this week, outperforming those of all competitors in the sector.
Meanwhile, the market is waiting for updates on the initial public offering of Reliance Jio Infocomm, which would unlock value for its parent Reliance Industries, Pandey said. The IPO is expected in the second half of 2025.
Investors will also keep an eye out for developments related to Donald Trump taking charge as the US President on Jan. 20. Potential tariff barriers by Trump's administration could pose a near-term threat to the sector, Pandey said.
TOP HEADLINES
* Bharti Airtel to acquire 26% stake in AMP Energy Green SPV for INR 378.9 mln
* PRESS: Vodafone Idea may launch 5G broadband with 15% lower price pack in Mar
* Lenders release pledge on shares held by Vodafone Idea promoters
* Vodafone Idea says DoT bank guarantee waiver good for 4G, 5G proliferation
Following are the resistance and support levels for the stocks for next week as per calculations by Informist based on their prices on the National Stock Exchange:
| Company | Price | Week-on-week change in % | Resistance | Support |
| Bharti Airtel | 1,598.85 | (-)0.10 | 1626.80 | 1579.40 |
| Mahanagar Telephone Nigam | 51.62 | 3.00 | 54.50 | 49.50 |
| Reliance Industries | 1,251.15 | 2.50 | 1276.10 | 1223.00 |
| Tata Communications | 1,736.55 | 1.30 | 1771.10 | 1713.80 |
| Tata Teleservices Maharashtra | 79.42 | 3.90 | 84.50 | 75.00 |
| Vodafone Idea | 8.27 | 10.70 | 8.50 | 8.00 |
| Nifty 50 | 24004.75 | 0.80 | 24279.50 | 23838.60 |
| S&P BSE Sensex | 79223.11 | 0.70 | 80431.90 | 78505.40 |
End
Reported by Akash Mandal and Alina Geogy
Edited by Rajeev Pai
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